[K_2]

Was wondering if anyone on here has any experience with these types of transactions.

A friend and I have considered doing this and I have read a few things online.

Seems in this state, every county holds their sales the same day every year. I also read that you had to be a resident of the county you are buying in. However, I don't know how accurate the information was. I read in one place that you have to wait three years and in another I read that you have to wait one year if it is a first or second offering, only 90 days if it is a third offering.

There are a few websites where you can by kits pertaining to this topic, are they a waste of money and time?

Anyone with experience care to share their knowledge regarding the process of actually obtaining the land legally, like how to have it transferred over in your name? I have read that you must do a title search, notify the owner within 90 days of transferring it over, notifying anyone else who may have an interest in the property, etc.

Was really just wondering what to expect and what kind of cost would be involved apart from the price you pay at the actual auction.

Is this something that can be done without a lawyer?

After you are able to redeem, do you have a regular deed to it just like you had bought it off the market from the former owner?

After the redeemption period, as long as you did everything required(notifying everyone) does anyone have the right to redeem?

Any advice or experiences you'd be willing to share would be greatly appreciated.


EDIT: After posting this, I found a website for a county courthouse that explained the procedure. For the most part, I believe I have figured it out. However, I'd still love to hear from anyone who has experience with these and any advice you can offer from prior transactions. All tips, advice, suggestions, comments are appreciated.

[oneguyinohio]

I have very limited knowledge. Each state is different. When I checked out Michigan rules, it was that you had to purchase 3 years worth of the tax certificates plus wait for the redemption periods. It seemed pretty complicated so I didn't pursue it any further. I didn't want to get tied up with leins that I couldn't redeam. In Ohio, there is only one sale of the property at tax sales. If your bid meets the minimum acceptable, you win...

I admittedly did not look as deep into the MI system, but lost interest. Ohio, being my home state, works out better for me.

Sorry I can't be of any more help. I'm sure the auditor's office at the places where you have an interest would know more of the process.

[Fr_Chuck]

I buy these properties all the time.

First the laws very by state, and those kits are just a waste of time, all you need to do is go to the county tax office and ask the clerk, if you have a nice one, they will tell you.

In basic general terms, the county court house holds a local auction every year. Normally there is no requirement that you have to live in that county to buy, but payments have to be made the day of the sale.
The bid starts at ( or has to at least reach) the amount of the tax due, if it does not reach that amount, the property does not sale. The price can go way beyond the tax owed on some properties.

In some states, you get a tax deed at that point and time, in other states you have to wait for what is called a redemptoin period, for those you get a tax certificate that you turn in, in the number of years for the deed. During that time you will need to pay your yearly tax due.

If the person who used to own it, wants to redeem it, they will have to pay the amount you paid, plus any additional taxes paid, plus any work you did for the property, keeping it moved, improvements and so on
*** in most areas) plus they have to pay a interest, all of the ones I am holding now, pay 10 percent if redeemed. ( try and find a investment that will pay 10 percent anywhere now adays)

You will receive a tax deed, a tax deed , some buyers do not like this, but as long as there is a title search done by the buyers and they get title insurance there would be no problem.

[K_2]

This may be a dumb question and I'm sorry if it is.

When your purchase either the deed or certificate at the auction, does that give you legal rights to the property as of that day? Or do you have to wait until the redemption period is over?

I was reading something about if the owners who defaulted on their taxes wanted to stay, then they must pay reasonable rent, but the way it was worded, I couldn't tell if that meant during the redemption period or after.

[Fr_Chuck]

If you get a tax deed on the day of sale, you have full rights.

The rights on a tax certificate can be iffy. You more have a lien on the property, but then in some areas you are held liable for zoning issues, such as trash or tall grass.

Of course if you go to charge them rent, they will merely redeem their property?? In most you have to give then notice of the sell, and inform them of their rights to redeem also.

But honestly, seldom, and I mean seldom do you buy property that has someone living in it.
1. first if there is a mortgage from a lender, they pay the taxes before they sell.
2. since people are given notice after notice, they normally wonder in a day or two before the sell and pay up the mim number of taxes due to keep it from selling.
3. most of the properties that sell don't have houses on them, may be lots next to homes where people forget ot pay those taxes because they paid their house taxes, forget they have two taxes to pay.
Or basically deserted houses,

The ones with good houses on them that are livable, will normally sell for a lot more than taxes.

So while I guess it can happen, don't expect to find much but really trashed houses at tax sells. Sometimes you get the grandma houses, where there were no close family and they died and no one paid taxes, but even those normally had no one living there or maybe some distance relation that did not keep the property up.

I would say over 80 percent of what I bought were empty lots
* where actually I make my most money. You get a lot ( depending on the tax value, but in rual america, for a few hundred dollars or less.
Well any piece of land is worth a few thousand,
On the houses, most have some or all of the windows busted out, expect plumbing to be missing, maybe doors open. Or holes in the roof.
The best one I got had a fire, but after gutting all the inside dry wall, it could be redid. The worst had a tree sticking out of the roof. ** I still rebuilt it and was able to sell it.